Honduras government freezes cement price for further 30 days

Honduras government freezes cement price for further 30 days
11 February 2014

Following an agreement with local cement companies, the Honduran government resolved to continue freezing cement prices at HNL160 (US$8.07)/bag.

On 11 January, the country’s executive power decided to maintain cement prices for a month, due to the strong hikes applied by cement companies and DIY shops.

“We are going to extend the price of cement at HNL160 for a further month and during this period of 30 days we will have a dialogue with Argos, to work out its price structure,” said Alden River, the country’s investment minister.

Argos had wanted to lift prices by HNL15, but the government said prices changes should be progressive rather than abrupt so they would not drastically impact the houseHNLd budget.

The decision to set a ceiling on cement prices is the product of a resolution by the Commission for the Defence and Promotion of Competition (CDPC), which stated that the cement sector had an oligopolistic structure.

“However, it is mutually agreed with both companies to continue talks and come to a mutual agreement for the country, as we cannot perpetually continue this cement price freeze,” said the minister. He assured that this would be the last price freeze and that during this time, the analyses required would be undertaken to define a new value for the building material.

Published under Cement News